WMP price weighs down New Year GDT

Published 5 January 17

The overall Price Index decreased 3.9% at the first Global Dairy Trade event of 2017. The drop was largely driven by a 7.7% fall in the WMP Price Index, which made up nearly half of the product traded.

WMP sold on GDT had previously been achieving a premium over EU WMP prices, but this latest decrease appears to have brought it closer to EU pricing again. However, EU prices for early January are not yet available, so the European price direction at the start of the New Year remains to be seen.

Meanwhile, SMP sold on GDT maintained its rather significant premium over EU product. The SMP GDT Price Index increased another 2.3%, but intervention stocks have weighed heavily on EU prices in recent weeks.

Overall, the slowdown in milk production in Oceania and the EU has helped put upward pressure on dairy commodity prices. However, product and region-specific supply-demand variations are adding a little more complexity to the global picture as we begin the New Year.